What expense category does prototype development come under?

There is no definitive answer to this question, as it will depend on the specific business and their accounting practices. However, some possible expense categories that prototype development could come under include:

  • Research and Development: This is a common category for prototype development, as the prototypes are typically created in order to test new ideas or products.
  • Marketing: Another possibility is to classify prototype development under marketing expenses. This is because prototypes are often used to test marketing campaigns or strategies.
  • Product Development: This is another common category for prototype development, as prototypes are a key part of the product development process.

Ultimately, the best expense category for prototype development will depend on the specific business and their accounting practices. The important thing is to ensure that the expenses are properly tracked and accounted for.

The information provided in this article does not constitute legal or financial advice and is for general informational purposes only. Please check with an attorney or financial advisor to obtain advice with respect to the content of this article.

Let Ramp automate your expense categorizations

Error Message
No personal credit checks or founder guarantee
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Tired of manually categorizing expenses? See how Ramp can automate this for you in the demo below